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Continental Expands Restructuring; 30,000 Jobs May Be Affected

continentalag 090120 lt

Continental AG (CTTAY.PK) said it will expand its restructuring program launched in 2019 that could affect about 30,000 jobs worldwide, including about 13,000 in Germany. It now aims to achieve annual savings of more than 1 billion euros from 2023 onwards, increasing from previous savings target of about 500 million euros annually.

Talking about the number of jobs getting impacted, the company said, "These will be modified, relocated, or made redundant."

The restructuring is due to low global vehicle production as well as the deepening economic crisis as a result of the coronavirus pandemic.

"The entire automotive industry is currently faced with enormous challenges. It has not experienced a larger, more severe crisis in the past 70 years," said Continental CEO Elmar Degenhart.

The German automotive supplier and tire manufacturer said it does not expect the vehicle production to return to the pre-crisis levels of 2017 before 2025.

The company had originally announced measures in September 2019 that would have affected up to 20,000 jobs worldwide, including about 7,000 in Germany. It has already completed a portion of the transformation program, affecting about 3,000 jobs worldwide since the end of September 2019, the company said.

Ariane Reinhart, Continental's Executive Board member for Human Relations, said that the company had held the exploratory talks in Germany and now entering a decisive phase. The company will announce the results of the talks once they have been completed.

Reinhart pointed out the willingness of the company to discuss new methods such as reduced working hours and simultaneous further training.

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